The tower forms part of Warisan Merdeka, which will be PNB's single biggest property project to date and its construction to create some 5,000 jobs.

The 100-storey tower that forms part of Warisan Merdeka will be the new headquarters of Permodalan Nasional Bhd (PNB) as the fund manager is already thinking about redeveloping its existing head office.

Come 2016, its main building on Jalan Tun Razak, Kuala Lumpur, will be 30 years old. It is already fully occupied by PNB and its companies.

"We have to ensure we have occupancy. We need to move to this place. It will be mainly used by us and our investee companies," group chief executive officer Tan Sri Hamad Kama Piah Che Othman said at a briefing in Kuala Lumpur yesterday.

Warisan Merdeka, a 10-year mixed-development project estimated to cost RM5 billion, will be PNB's single biggest property project to date. Its construction is set to create some 5,000 jobs.

The tower alone, of about 525 metres, makes up half of the cost. The project will be done by PNB's wholly-owned PNB Merdeka Ventures Sdn Bhd, but it is open to having partners.

It may also sell part of the 14.6ha site, but this has yet to be finalised as it also wants to have recurring income from the properties.

"We must make sure returns prevail," Hamad Kama Piah said, adding that 8-10 per cent a year would be a good rate.

Property valuers said property prices shot up when the Petronas Twin Towers was built in 1985. Some foresee Warisan Merdeka to be the next KLCC.

"We need to look at the project very objectively. New York had five tallest towers in the world at any one time and they are all doing well," Previn said.

The land price in the Golden Triangle area is currently around RM2,000 per sq ft, while the net lettable area of a top office building is about RM800 per sq ft.

But valuers who were not so bullish said the key challenge is how to deal with traffic flow.

"You must look at the project site. It is very dense and road access and public transportation is limited. If the government can improve that, then we will have a different price outlook," said a valuer who declined to be named.

This was acknowledged by Hamad Kama Piah, who stressed that PNB has consultants working on the traffic issue. The cost of improving infrastructure in the area has also been factored into the overall RM5 billion cost, he explained.

an Sri Hamad Kama Piah Che Othman pointing to the site of Warisan Merdeka
development during the press conference pn Wednesday.

KUALA LUMPUR: Permodalan Nasional Bhd (PNB) will be undertaking the Warisan Merdeka development over three phases in 10 years starting with the 100-storey tower next year.

At a press conference yesterday to explain PNB’s plans for the project, president and group chief executive Tan Sri Hamad Kama Piah Che Othman said the development costing RM5bil would also have a shopping complex and condominiums.

The 100-storey tower – touted to be the country’s tallest – will cost RM2.5bil to RM3bil and will have gross floor space of 3 million sq ft and 2.2 million sq ft of net floor space .

“It will be a five-star green building. We are confident its completion in 2015 will create some excitement and spill-over benefits for the development as a whole,” Hamad added.

PNB has set up wholly-owned unit PNB Merdeka Ventures Sdn Bhd to undertake the project. The company is headed by Tengku Abdul Aziz Tengku Mahmud who was from Guthrie Property Development Holding Bhd and Sime Darby Property Bhd. He came on board early this year.

“We are now finalising the project design and concept, and may invite professionals, both local and foreign, to submit their ideas for the project.

“PNB’s existing headquarters, Menara PNB will be 30 years old by the time the new tower is completed. We are looking for strategic positioning for the future and will need new office space for the expanding PNB group of companies. The Warisan Merdeka tower will become the new PNB headquarters while Menara PNB will be upgraded and leased out for recurring income,” Hamad added.

He said PNB had the capability to finance the project through internally generated funds but he did not discount resorting to borrowings “if the interest rates are attractive.”

On the rationale for PNB’s decision to undertake the project, Hamad explained: “We have been planning to develop the land since 2004 after acquiring it in 2000. After holding the land for so long, we decided it is now the right time to move ahead with the project. As an investment house, our intention is to optimise returns from the development.”

He said the project was expected to yield reasonable returns of between 8% and 10%.

“For the past few years, we have revisited the plan every year. Now with Tengku Abdul Aziz helming PNB Merdeka Ventures, we are more focused on the project and are ready to move ahead with it. The Government is also promoting this type of development.”

PNB paid RM310mil or RM220 per sq ft to buy the 36-acre land from Pengurusan Danaharta Nasional Bhd in 2000. Hamad said the market value of the land was estimated at RM800 per sq ft today.

Of the 36 acres, around 17 acres are occupied by Stadium Merdeka and Stadium Negara, which have been identified as a national heritage site. Conservation works have been undertaken to restore their heritage characteristics and the two stadiums are now being managed by the National Heritage Trust.

The overall Warisan Merdeka development on 19 acres would have to complement and blend with the heritage theme, and together with the restored stadiums, the site was set to be another major landmark in Kuala Lumpur, he said.

Hamad said although the project was scheduled to take 10 years, it may be expedited if market conditions warranted it.

“As a long-term player, we would prefer to own the Warisan Merdeka property and leased it out for recurring profit but we may also consider unlocking the value if the situation warrants it.”

He said PNB had been expanding its portfolio of property assets from mainly investing in equities previously. It had been purchasing commercial properties that offered competitive returns and potential for capital appreciation at reasonable prices.

Today, its property portfolio includes Menara PNB, PNB Darby Park, Kenanga International Building, Bangunan MAS in Kuala Lumpur, Hotel Perdana in Kota Baru and PNB Ilham Resort in Port Dickson. Its first offshore property, Santos Place in Brisbane, Australia, a six-star Green Star building, was acquired in August for A$287mil.

Hamad said PNB was also active in property development through its strategic holdings in a number of companies, including the merged entity of Island & Peninsular Bhd, Petaling Garden Bhd and Pelangi Bhd.

__________________The modern conservative is engaged in one of man's oldest exercises in moral philosophy; that is, the search for a superior moral justification for selfishness. John Kenneth GalbraithWe must always take sides. Neutrality helps the oppressor, never the victim. Silence encourages the tormentor, never the tormented. Sometimes we must interfere.Elie Wiesel

Tnx. Anyway the above pictures might not be true. The latest news as at Today.

Quote:

Melbourne firm reaches for the towering skies
Philip Hopkins
November 24, 2010
MELBOURNE architectural firm Fender Katsalidis has won a design tender in Malaysia for what will be the world's second-tallest tower.

The tower, which will be more than 580 metres high and have more than 100 storeys, will be surpassed only by the Burj Khalifa tower in Dubai, which at 828 metres is still by far the tallest building in the world.

The new structure will be built in Kuala Lumpur, surpassing also Malaysia's current highest building, the Petronas Towers, which are 452 metres tall.

Advertisement: Story continues below
The cost of the new tower has not been finalised, and detailed drawings are not yet available.

More than 263,000 people have signed a Facebook petition against Prime Minister Najib Razak’s skyscraper plan, saying that taxpayers’ money would be better spent on education, health care and public transport.

“I would like to retain the Twin Towers as the highest buildings in Malaysia,” said Mahathir, who retired in 2003.

“At the moment we don’t need any tower higher than that. We should build the 100-story tower, but maybe a little bit later when I am not around,” he said.

The Petronas Twin Towers were the world’s tallest buildings when completed in 1998.

Najib, who wants the new tower built by 2020 as part of an ambitious new infrastructure push, has said the project can become a business hub and that the Petronas Twin Towers originally attracted similar criticism.

__________________NEW YORK. World's capital.

“Office buildings are our factories – whether for tech, creative or traditional industries we must continue to grow our modern factories to create new jobs,” said United States Senator Chuck Schumer.

That crystal ball (palatir?) tower rendering shows up every 4 months or so.

__________________The modern conservative is engaged in one of man's oldest exercises in moral philosophy; that is, the search for a superior moral justification for selfishness. John Kenneth GalbraithWe must always take sides. Neutrality helps the oppressor, never the victim. Silence encourages the tormentor, never the tormented. Sometimes we must interfere.Elie Wiesel

KUALA LUMPUR: How would building iconic projects benefit Kuala Lumpur in its journey to become a world class metropolis?

This was one of the key discussions at the Greater KL Smart City of the Future conference held in Kuala Lumpur recently.

Under the Greater KL initiative is the building of the 100-storey Warisan Merdeka by PNB, the development of the Kuala Lumpur International Financial District, the proposed Kajang-Sungai Buloh mass rapid transit (MRT) line as well as the revitalisation of rivers and waterfronts. These projects have generated a lot of interest and brickbats.

Datuk Eddy Chen of Metrokajang Group, who was moderating at the conference, said he backed the Warisan Merdeka project.

"I'm all for the Warisan Merdeka project. A lot of people had objected to the building of KLCC Petronas Twin Towers but today it is an icon not only for the city, but it is recognised all over the world.

"Those who objected are now bringing their family, friends and visitors to shop, dine and even to relax at the park there."

Chen added that if the project kicks off, the government should look into upgrading the surrounding environment, too.

"There are low-cost flats and a cemetery there. These places should be upgraded too. We don't want the tenants looking at a dilapidated environment," he said.

Speaker Ho Chin Soon, managing director of Ho Chin Soon Reserach Sdn Bhd, said some quarters feared that the building would not enjoy full occupancy.

"Where there is supply, there will be demand. In the long run, it will take care of itself," he said.

Ho said Warisan Merdeka must be connected by MRT and an integrated public transport.

"There must be a MRT line running through here and the Warisan Merdeka should be linked to Bukit Bintang. The place needs to be accessible for the business community and the public," he said.

Zerin Properties chief executive officer Previndran Singhe said when the Petronas Twin Towers was completed in 1998, KL became an "Alpha" city like New York and Hong Kong.

"What the Alpha cities share are iconic buildings and KL has its fair share of them. For example, there is the Sultan Abdul Samad building, Petronas Twin Towers, Menara Maybank and Dayabumi.

"Every time we have an iconic building, it takes our city to greater heights. KL needs a growth impetus and having an iconic building like the Warisan Merdeka will enhance this," he said.

Previndran said the Warisan Merdeka doesn't have to be a complete business building.

He said 25 storeys could be for business, 25 storeys turned into a hotel, 25 storeys for retail and another 25 stories for residential use.

Previndran said the Greater KL plan is good, but they should all strive for a greater planned KL.

Another hotly discussed topic was the "Urban Connectivity-MRT and High Speed Rail Links: Moving Forward".

The speakers generally agreed that building of a MRT system will enhance the intra-city connectivity while plans for high-speed rail links to Singapore will accelerate regional connectivity.

Mag Technical and Development Consultants Sdn Bhd director Goh Bok Yen said the whole undertaking of the MRT project in the Greater KL plan must be interconnected strategically.

"We must have the MRT at the right place, time and location. We have heard residents protesting against the line running through their neighbourhoods and some have asked to incorporate buses in their area.

"This might be the voices of the affluent but what about the low-income earners who want the line in their areas? There are also residents who are calling for the line to run underground in certain areas.

"Where there is demand, they should put the lines there. They should also look into areas that are densely populated. We also have to look at strategic locations.

"For example, the area around Plaza Phoenix in Cheras is densely populated and an MRT station there will be useful for the residents. The authorities have to get the projection right. If not, there will be complications in the future," he said.

Goh also said that the MRT will not work if there is no proper feeder service and park and ride facilities at the stations.

"The MRT, buses and taxis must come together or the system will not work," he said.

Public Land Transport Commission chief development officer Azmi Abdul Aziz said that he will look into the issue of some parties wanting the MRT line to run underground.

"If we can, we would like to emulate other cities and run the MRT underground. However, in optimising costs, we need to look at the areas where we can implement the elevated and underground lines."

Conference participant, KL police chief Datuk Zulkifli Abdullah, said that security is another vital element of the development of a Greater KL.

"Security has always been an afterthought in previous developments. It is important for the police to participate and give their input on any security issues that is related to development. What is important is having a liveable city which is safe for everyone," he said.

All the issues discussed at the conference will be submitted to Performance Management Delivery Unit.